High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

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For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

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<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

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The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

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For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

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The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

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Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

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Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

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The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

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According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

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Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

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Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

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Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

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<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

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A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

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The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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It’s now overwhelmingly clear the government is pinning its hopes on dwelling investment to fuel solid growth into 2014.  The declines in house prices since the peak of the boom in 2010 have obsessed property clock watchers for much of the interim – particularly as we now have a daily “home value index” monitoring “true value of movements” across individual housing markets.  And now the Treasury has weighed in and all but given a cart blanche guarantee that property is in “recovery mode”.
"In a world where mining investment doesn't contribute to growth any more, one of the obvious things is the housing market, given we think there is an under-supply. That's a natural and desirable development and we're seeing early signs of it." (David Gruen – head of the Treasury’s macro-economic division.)
Undersupply – I’m tired of hearing the word.  I’ve written previously, that the only ‘undersupply’ we have in our buying market is the availability of affordable, well-located accommodation – and by “well-located”, I don’t mean accommodation stuck on the fringes of our cities, where essential “infrastructure” extends no further than the single road in and out of the CBD.  The spruiked 25-minute drive buyers were sold when they purchased can now be a three-hour congested headache in peak hour traffic.
The housing shortage debate is one that gains regular media traction yet is rarely understood.  If it’s simply a case of putting every newly formed household prospected to enter the country into a new home, then the short answer is yes, we have a housing shortage – we’re not building enough.
The National Housing Supply Council claims there is a shortage of 230,000 homes based on future population estimates, which is all well and good, however, if you’re going to build more supply to sell to this expected population surge, you have to do so in an atmosphere where there is consumer demand – something both state and federal governments are now hoping to stimulate.
The housing shortage debate is one that gains regular media traction yet is rarely understood.  If it’s simply a case of putting every newly formed household prospected to enter the country into a new home, then the short answer is yes, we have a housing shortage – we’re not building enough.
It would be easy to formulate a long list of reasons why home buyers generally avoid new dwellings when searching for residential property in an incentive-less environment. Some would include the lack of amenities in the areas detached dwellings are located, or the quality of construction, which is overwhelmingly poor, not to mention the restrictive lending practices that deter first-home buyers purchasing high-rise accommodation.
However, the evidence generally underlines that owner-occupiers – and for that matter investors – prefer purchasing established over new, which goes a long way to underpinning prices in this sector of the marketplace.
Over the last decade to 2011, 92% of all borrowing by residential property investors was for established dwellings – slightly higher than the 82% of borrowing by owner-occupiers during the same period.
Obviously every market suffers from inevitable periods of low confidence and downward market cycles – therefore, to maintain underlying demand in the new home sector, it’s essential new homes attract a larger demographic of property buyers – principally family home buyers.  Sensibly speaking, there is only one way to do this – infrastructure in new estates needs to be funded and time lined at the start of a new project. At the moment, land prices are increased disproportionally by development and community costs, yet families moving into outer-suburban areas see little evidence of the ”promised” essential amenities to meet the growing surge in population.
Furthermore, because construction costs are disproportionately inflated, it’s impossible for developers to reduce the capital cost to entice cash-strapped home buyers who would perhaps be willing to compensate on location in order to purchase a bigger property.
As for affordability – well, you only need look at the overall number of home sales, which nationally are at their lowest levels in 25 years  (figures not seen since the late 1990s) to assess activity from buyers is sending a clear message that ‘affordable’ isn’t in abundance. In the new home sector, hefty development overlays and other imposed taxes all but ensure land prices remain above fair market value.
It’s not just a case of low confidence and debt aversion that is pushing greater numbers onto the rental ladder – especially considering our current environment of low rates and flat prices. We’ve all run out of steam, too busy paying down debt while coping with the rising cost of living – as recent surveys have underlined.  Even this weekend’s super Saturday results – which showed a marginal improvement on long-term trends – are still a long way from guaranteeing a period of solid growth in the established sector.
However, the Treasury is adamant – it is looking forward to a “pick-up in construction activity” to meet a prospected surplus, and by hook or crook the government is going to get us there. Of course, to achieve this aim, there has to be demand for new housing, and how does the old saying go?  You can lead a horse to water but you can’t make it drink. At the moment, developers are struggling to give house-and-land packages away – let alone sell them!
 
<hr class="system-pagebreak">
 
As the ABS recently confirmed, the number of housing starts recorded for the June quarter was 13.4% lower than the 10-year average.  Therefore, if the housing market is going to save the government’s stubborn need for a 2013-14 surplus, fresh demand needs to be stimulated – and stimulated quickly. There’s only one way to do it, and that’s falling back onto the old tried and tested first-home owner grant formula.
Nationally construction has been dwindling since 2006 – except for Victoria, that is, which from the start of 2008 to March 2012 underwent a building boom, which accounted for one third of Australia’s total building starts for the same period. The majority of this new housing – 60% – was in the form of detached dwellings in the sparsely facilitated “fringe” locations, however, the boom happened to coincide with the federal and state government first-home buyer boost as well as historical low lending rates.
Consequently a large “interest-rate sensitive” demographic was encouraged to purchase “new” over established. A look back at the sales data during this period reveals that in November 2008 overall sales of new dwellings had increased by 1,764 to 11,695.  Melton, in Melbourne’s west, grew by 8.2%, equating to 7,535 new residents – an all-time high.
Other regions such as <a href="/news">Deer Park</a> (17 kilometres west of Melbourne’s CBD) recorded a 15% rise in its median value. And by January 2009 there had been 530 house sales recorded in <a href="/news">Tarneit</a> (25 kilometres south-west of Melbourne), with prices increasing 21%.
<a href="/news">Werribee</a> (32 kilometres southwest of Melbourne) and <a href="/news">Point Cook</a> (25 kilometres south of Melbourne) attracted the greatest number of grant recipients, with <a href="/news">Werribee South</a> recording a whopping 25% rise in its median house price, which was clearly unsustainable over the long term.
As with all first-home buyer incentives, once the grant was stripped away – prices retracted and demand fell away. First-home buyers encouraged to buy on a whim through short-term cash incentives were consequently stuck in limbo during the inevitable “correction” phase of the market.
The remaining 40% of building activity in Victoria during this period was principally in the form of high-rise dwellings in Melbourne’s CBD and immediate surrounds. As I’ve reported previously, I still come across first-home buyers who purchased during this period, with mortgages in excess of the current valuation on their apartments.
However, the solution remains that to date, the only sure way both state and federal government have been able to fuel an uplift in “new home” demand is by way of first-home buyer invectives, and previous lessons of negative equity and inevitable market retractions are not going to deter their plan to kick-start the second housing boom in a decade.
In Western Australia first-home buyer grants are at their highest levels since the federal boost ended in 2009, and according to information from the REIWA, first-home buyers have made up 30% of sales in Perth during the September quarter.
Other states are also coming to the party, with South Australia offering a $8,500 grant to anyone building a new home while at the same time, various construction companies are also adding on their own sweeteners to the deal.
South Australia plans to spend thousands on TV and print media advertising the incentives, aimed principally at first-home buyers who will see their grants double from $7,000 to $15,000 to sweeten the deal.  However, place a note in your diary for the inevitable market correction, which – if the predicted surge eventuates – should kick in by 2014, after which the grant will be culled completely.
Whether the uplift in demand fuels another bubble is debatable – it could be that the underlying and very fundamental change in consumer behaviour, which is encouraging cautionary sentiment, will continue to deter a majority from heeding the government’s call. With the RBA being “forced” to lower interest rates in an increasingly soft environment, expect housing busts and booms to remain a very real feature of our future housing and “new home” market.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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catherinecashmore-6LXia3pPQj

Infrastructure investment the only way to stimulate the housing market

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<img src="/images/stories/2012/10/21point5percent.gif">
The amount that house rents have increased in Perth in the 12 months to September, according to Residex. The median weekly asking rent for houses is $480 and the median yield is 5%.
<hr>
<img src="/images/stories/2012/10/11point8percent.gif">
The amount that house rents have increased in Melbourne in the 12 months to September, according to Residex. The median weekly asking rent for houses is $425 and the median yield is 4%.
 
<hr>
 
<img src="/images/stories/2012/10/10point7percent.gif">
The amount that house rents have increased in Sydney in the 12 months to September, according to Residex. The median weekly asking rent for houses is $570 and the median yield is 4.5%.
<hr>
<img src="/images/stories/2012/10/10point6percent.gif">
The amount that house rents have increased in Canberra in the 12 months to September, according to Residex. The median weekly asking rent for houses is $520 and the median yield is 5.2%.
<hr>
<img src="/images/stories/2012/10/10point5percent.gif">
The amount that house rents have increased in Brisbane in the 12 months to September, according to Residex. The median weekly asking rent for houses is $420 and the median yield is 5.2%.
 
<hr>
<img src="/images/stories/2012/10/8point4percent.gif">
The amount that house rents have increased in Darwin in the 12 months to September, according to Residex. The median weekly asking rent for houses is $580 and the median yield is 6%.
 
<hr>
<img src="/images/stories/2012/10/7point4percent.gif">
The amount that house rents have increased in Hobart in the 12 months to September, according to Residex. The median weekly asking rent for houses is $365 and the median yield is 5.2%.
 
<hr>
<img src="/images/stories/2012/10/4point6percent.gif">
The amount that house rents have increased in Adelaide in the 12 months to September, according to Residex. The median weekly asking rent for houses is $345 and the median yield is 4.7%.
 
<hr>
<img src="/images/stories/2012/10/9point3percent.gif">
The amount that house rents have increased across Australia in the 12 months to September, according to Residex. The median weekly asking rent for houses is $420 and the median yield is 5%.
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cknowlton-QnEa6ntUYP

Perth house rents up 22% in a year: Residex state-by-state analysis

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Melbourne real estate agents continue to underquote properties selling at auction, according to the latest Property Observer survey on the issue.

An analysis of 74 sales catalogued by National Property Buyers over the last four weeks shows 55 of those properties sold for above the price range indicated by the selling agent prior to auction.

That’s just shy of 75% of properties selling for more than the upper bracket of the quoted price range.

On average, those 55 properties sold for 8.7% above the upper bracket of the price range indicated by the agents.
Property Observer’s <a target="_blank" href="https://www.propertyobserver.com.au/news/underquoting-still-rife-in-melbourne/2012100456988">most recent underquoting survey</a> found 75% of September surveyed properties sold for over price indications. Those that sold above went for an average of 6.5% over.

Prior to that, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/melbourne-auction-listings-typically-selling-at-5-above-upper-end-estimate/2012090956435">an analysis of 220 auction results</a> in the months leading up to spring found 77% of properties were selling above price guides. Those that sold above were going for an average of 5% above expectations.

Just one property sold for below the price range indicated by agents prior to auction.

The properties analysed were only those where a price range was given with a lower and upper price indication.

Buyers’ agent Catherine Cashmore, who compiled the raw data for this survey, says buyers can expect to pay more than the price indicated before auction.

“Price quotes are important to attract buyers in the first place – no buyer likes to play guessing games when it comes to putting a price on an advertised listing.  However, as with any auction, the quote has to be at a level to attract as many potential purchasers as possible, whilst at the same time, not being too far from vendor expectation to achieve a sale,” Cashmore says.

“There are still agencies who quote at a level which we know from our own research to be too low to reasonably achieve a sale within the advertised range – we come across them weekly – and it would be fair to suggest buyers can expect to pay above the advertised price quote in most circumstances, especially when there is competition.

“However, bear in mind, every real estate sales agency quotes differently, so it's always important to do the necessary leg work to avoid wasting time and money inspecting a home, which will only ever achieve a sale price in excess of the advertised figure.”
 
<hr class="system-pagebreak">
 
Cashmore says more owner-occupiers in the market can push up auction prices.

“Stock levels have been plentiful this year, however the 'best of the best' has not been in abundance.  Owner-occupiers have dominated the inner-city market (with numbers of investors reduced due to continual poor consumer confidence), and it's well known that owner-occupiers are the demographic willing to pay an extra 5-10% more to secure the home of their dreams.  Hence why owner-occupiers fuel price growth and hence why 'investment grade' homes are chosen to attract this demographic.

The most extreme case of underquoting, or overly enthusiastic bidding, was a two-bedroom <a target="_blank" href="/news">Collingwood</a> house that sold for $662,500, 50% above the pre-auction indicated price range of $400,000 to $440,000.

A four-bedroom <a target="_blank" href="/news">Fitzroy North</a> house sold for $1,845,000, or 29% above the pre-auction indicated price range of $1.3 million to $1.43 million.

And a two-bedroom <a target="_blank" href="/news">Hawthorn </a>apartment sold for $652,000, 25% above the pre-auction indicated price of $470,000 to $520,000.

The $600,000 to $1 million bracket had the most cases of underquoting. Of the 26 sales in that bracket analysed, 23 or 88% sold for above the pre-auction indicated price range.

Of those 23, 17 sold for more than 5% above. Those 11 properties sold for an average of 11% over the pre-auction indicated price range.

For properties selling under $600,000, 64% sold for above expectations for an average of 5.7% over.

For properties selling over $1 million, 70% sold above expectations, an average of 10.2% over.

The property sales analysed come from National Property Buyers weekly survey of the Melbourne market.

The properties recorded those thought to be investment-grade or cream of the crop properties. They are thought to be properties that hold the best potential for long-term capital growth and rental demand.

The price quotes are received as close as possible to the auction date to avoid step quoting practices.

Cashmore says agents who put their price quotes too high risk scaring away potential clients. While Cashmore agrees price quoting can be frustrating for clients they must realise that more legislation won’t stop the practice.
 

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awalsh-7Ub9EypybQ

Sale prices edge 8.7% above estimates of Melbourne agents underquoting at October auctions 

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In my<a target="_blank" href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector.
We are now going to turn to how various development levies, contributions and tax structures that are layered into the property market and the impact that such costs are having on supply of new housing. We reflect on this topic with Mark in this post.
From the onset of this topic, I think that it would be correct to put the proposition that the weight of costs levied against the development industry are now trending towards "getting out of hand". Clearly, infrastructure has to be provided, but are we going about this in the right way, and are funding models keeping pace or delaying projects?
The question to ask is, has the right to develop a project simply been held captive to the payment of these fees, shifting the cost burden unfairly, which appears to lead to the conclusion that such levies and contributions are clearly a tax in need of reform?
Mark opens his remarks with the comment that years ago, the various levies were minor and that, historically, there was a clear direct relationship between the impacts and needs of the individual development aligned with the charges that were being levied.
“Now, levies have evolved into many different formats and they are hindering development.  Levies are moving away from the original intention of financing directly related infrastructure.  I feel there is a foundation to suggest that the former direct relationship needs to be restored, but at the same time I acknowledge that this is a major topic and area for future possible reform.
“Voluntary planning agreements might be one way around this, because all parties come to the table in a constructive and open manner.  The developer has the opportunity to directly discuss options with the consent authority and jointly explore ways to manage the needs of the development and community.
“This is as opposed to a developer simply facing blanket Section 94 levies that often remain unspent by the authority many years after the development has been completed.”
“However, again I have to come back to the financial impact that these costs have on any project.  I would like to make the point that these development contributions and levies are usually payable up-front before any construction work is undertaken.  They have to be funded by either debt or equity, so they become part of the capital cost to be carried through the life of the project.  For large multi-staged projects, this cost may be carried for many years.  For a major project, it will be years before this expenditure can be recovered from sales revenue.  The need to fund these costs throughout the lifetime of the project adds considerably to development costs and therefore must impact adversely on selling prices and affordability.
“Why can we not structure the payment of the levies and contributions so that they are payable before practical completion of the development can be granted by the certifier to reduce the cost of development and improve affordability?
“Given the fact that the construction industry employs so many people and generates so much flow-on activity throughout the economy, it is difficult to understand why so many financial burdens are imposed on it.
“The current approach needs some re-thinking, covering the purpose of levies and financial contributions and reconsideration of when they are paid.”
 
<hr class="system-pagebreak">
 
Mark points to what he sees as a failure in the current approach.  As an industry, we need to seek to reduce as many of these on-costs as possible to improve affordability.  At the end of the day these are passed on as part of the of the selling price.
“In practical terms, the buyer of a new home has to absorb all of this cost as part of their purchase price, yet the infrastructure will be used for may decades.  I think there maybe ways that subsequent buyers, such as second and third-time buyers of the home, can also contribute, possibly through council rates to the infrastructure that everyone uses and benefits from.”
GST is imposed on new dwellings but not on re-sales of existing homes.  The reality is that the states get the bulk of this tax, along with stamp duty from the sale of homes.  This is a hard area for any reform, especially in an era where state governments’ are struggling to fund their infrastructure needs.
“How stamp duty is applied, rebated, used as an incentive and varied from time to time can distort the market.  It allows governments to directly influence either the overall market or portions of the market.  Often the industry suffers because of policy shifts, without full regard to the unintended consequences.
“I do not agree that markets should be stimulated in a piecemeal fashion.  We now have a patchwork of offers in various forms that vary from State to State.  Just stimulating one sector of the market is a political move and it’s never really a good idea as other sectors suffer.
“Prior to 30 June this year, NSW offered stamp duty exemption on new off-the-plan houses under $600K.  This resulted in a significant increase in demand in this portion of the market but, once the deadline passed, sales in this sector of the market reduced dramatically – future demand in this sector of the market was brought forward, stimulated by the incentive.  While the stamp duty exemption was in place, demand for homes above $600K was significantly reduced.  Any homes that were priced in, say, the $600K to $650K price bracket before the stamp duty exemption was introduced, were extremely difficult to sell unless the price was reduced to below $600k so that the stamp duty exemption could apply.  Purchasers, understandably, were keen to focus in a price bracket where the stamp duty exemption applied.”
Mark also sees the reality that while most council rates increases are capped yearly to a fixed maximum percentage increase imposed by the state government, it makes the question of local government being able to fund local infrastructure improvements a much more demanding and complex issue.
“We have state governments who are concerned about taking on debt to fund infrastructure and this is putting pressure on local governments to increase Section 94 contributions and enter into voluntary planning agreements to fund infrastructure."
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
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How development levies are impacting the level of new housing: Mark Percy in conversation with Peter Chittenden

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Over the last few years there have been many well-documented projects that show the transformation of existing buildings through the renewal of plant and controls systems. Now that the Green Building Fund program has ended, large-scale projects are looking less appealing to many owners, especially in the current mood of global economic uncertainty. All is not lost in the drive towards more efficient building stock – we just need to get a bit creative and pay more attention to the fundamentals.
The positive influence of a skilled and engaged facilities manager has long been recognised and was highlighted in The Warren Centre’s “Low-Energy High-Rise Project”. This study showed that buildings could realize up to a 1.3-star improvement in their NABERS energy rating if “the manager reports a higher level of energy efficiency knowledge”. This knowledge must be backed up by regular monitoring and subsequent action to correct irregularities and optimize building operations, which of course requires sufficient time and resources to take action.
A recent CBRE case study documents the benefits that can be realised through a dedicated building management team. CBRE manages a prominent building in Melbourne CBD and in mid-2010 put in place a new strategy to reduce energy and water consumption through operational improvements with no capital cost to the building owner.
The building management team documented the run times of all plant and equipment, analysed the data and adjusted controls strategies for the greatest efficiencies. It was found that a large proportion of the building’s plant had been operating well outside normal business hours due to building management system's controls limitations. Common area lighting had also been left for tenants to turn on and off as needed.
Operational strategies were developed for greater energy and water efficiency. A shut-down procedure was documented to control lighting and manually shut down plant via the building management system at the appropriate time, in line with tenant’s lease agreements. Further efficiencies were gained from adjusting outside air set points, chiller staging, cooling tower staging and primary and secondary chilled water loop temperature settings.
Analysis of the 2011 calendar year showed reductions of 9.2% and 26.5% on electricity and gas consumption respectively, with significant financial benefits as energy costs rise. Most significant is that these improvements were achieved without large-scale capital investment. The building’s strategic improvement plan has now been reviewed allowing investment to be targeted in the knowledge that the “quick wins” have been achieved.
These results would not have been possible without a knowledgeable, motivated and appropriately resourced management team. If you are a facilities manager think about all the variables that could influence your energy efficiency and how you could control them more effectively. If you make decisions about your facilities management team, encourage high performance but remember that you get what you pay for – does your team have sufficient time and resources to be able to manage the detail? Are they empowered to take action and achieve the quick wins? Are their opinions sought when making investment plans?
As the people most likely to understand your building’s operations give them the respect they deserve – love your facilities manager!
Rebecca Pearce is head of sustainability for the Pacific region at <a href="https://cbre.com/" target="_blank">CBRE</a>.
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A creative building manager can significantly reduce energy consumption at no extra cost

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Retail Adventures was finally placed in administration over the weekend, but the company will live on through a new entity by shedding unprofitable stores and operating under a licence from administrators.
The developments <a href="https://www.smartcompany.com.au/retail/052330-retail-adventures-in-dire-straits-as-suppliers-receive-ominous-email">follow weeks of rumours about store closures</a> and entrepreneur Jan Cameron's supposed plans to save the company.
Cameron was not successful. Just three years after buying the company for $85 million after an initial collapse, it was placed in the hands of Deloitte restructuring services over the weekend.
Last week, administrator Vaughan Strawbridge from Deloitte said a licence agreement is now in place between Retail Adventures and Discount Superstores Group to manage the Crazy Clark's and Sam's Warehouse stores.
Deloitte was contacted this morning regarding the restructure, but none of the administrators were available before publication to expand on their statement.
"The licence arrangement is designed to allow the Crazy Clark's and Sam's Warehouse stores to continue to trade under a new management structure," he said, adding this was necessary because Retail Adventures could not be restructured.
"We will immediately begin a detailed review of the financial position of the company and, as part of this, will review the performance of the 32 remaining Crazy Clark's, Go-Lo and Chickenfeed stores."
However, these stores are trading at "significant losses", Deloitte said.
There are plenty of questions left unanswered, such as what happens to the current creditors, and the structure in which Discount Superstores will be "licenced" from Deloitte.
What's clear is that hundreds of jobs are likely to go.
For three of the company's biggest mistakes, see page 2.
 
<hr class="system-pagebreak">
 
 
It's a disappointing outcome for Retail Adventures. But it's not surprising – the company and Jan Cameron have made significant mistakes along the way. Here's just three to be mindful of:
<h3>1. Paid too much for a troubled asset</h3>
Back in 2009 Jan Cameron handed over $85 million for Retail Adventures. The problem was that this was simply too much.
Of course, it's difficult to blame Cameron for paying that much before retail took a turn for the worst. But it was still a premium for a retail company, and at the time it wasn't as if the industry was at its peak.
The problems with Retail Adventures can be traced over the past three years, but paying $85 million for a collapsed retail group wasn't a great way to start.
<h3>2. Pursuing a discount strategy without understanding it</h3>
It would be hard to avoid discounting when your chain is built on the idea of low prices, but Cameron's mistake was in pursuing a discounted offer at a time when retail was already doing badly.
With margins squeezed thin, there wasn't any room to reduce them. Over the past three years, those margins have simply gotten thinner and thinner, with the company forced to offer even lower prices and make money through moving high volumes of stock.
That obviously hasn't worked, and it's a key sign Cameron didn't understand what she was getting into. Discounting is one thing, but pursuing a strategy of discounting during a period of low sales is disastrous.
<h3>3. Staffing problems</h3>
Jan Cameron made some bizarre claims over the weekend about her staff, saying not only that former Harris Scarfe chief Robert Atkins had a "vendetta" against her and claiming he was sacked for sexual harassment, but that other employees had problems as well.
"Some (staff) had a strange desire to run me out of money, thinking the company would get bought by the next sucker and they could continue on with their cruisy ways," she told The Australian.
Staffing problems will always drag a company down. An inability to complete a major review of all staff and then replace those necessary is a key factor in Retail Adventures' turmoil – and a trend that will be crucial to reverse if it is to survive.
 
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany.</a>
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Retail Adventures in administration with plans to close stores

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The auctions market has maintained its strength even though hundreds more listings were added over the weekend, with capitals besting clearance rates from a year ago.
While the spike in listings comes ahead of the Melbourne Cup Day weekend, Australian Property Monitors economist Andrew Wilson says another week with listings above 60% is a testament to the ongoing stability of the property sector – <a target="_blank" href="https://www.smartcompany.com.au/property/052463-modest-house-price-growth-will-underpin-housing-recovery-bis-shrapnel">and its eventual recovery</a>.
"The market was able to absorb a greater rate," he says.
"The higher number of listings is a trend that's been growing. This is the sixth consecutive week with auction clearance rates above 60%"
"You would have expected the market to moderate itself, but to get a result like that even with the high number of listings is an encouraging result."
Melbourne recorded 1,053 auctions over the weekend, with 690 selling and 363 passed in resulting in a clearance rate of 66%. That compares to 60% last weekend, and 50% during the same weekend last year.
REIV chief executive Enzo Raimondo said in a statement the result was "very healthy".
"A further sign of the improving sentiment is the increase in residential transaction volumes this spring, with around 9% more auctions being held than at the same time last year."
In Sydney, the city recorded a clearance rate of 67.9% from 524 listed auctions, compared with 61% last week and 54.9% during the same week last year.
It's an encouraging result for the market, which has already been tipped to continue rising over the next several months. Wilson says while there are some developments affecting each city – like a soft premium market in Sydney and failure of interest rate cuts to affect auctions in Melbourne – there is still hope.
"The market has built its own momentum, and there's a lot of activity happening."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Super Saturday records high property auction clearances despite surge in listings

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Credit Union Australia (CUA), the nation’s biggest customer-owned lender, has dropped its one-, two- and three-year fixed rate home loans to 5.3% from October 26 – making them among the lowest offered in the market today.
Click to enlarge
<a href="/images/stories/2012/10/cuaoct29.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/cuaoct29thumb.gif"></a>
Jason Murray, CUA’s general manager for products and marketing, says for people wanting to take advantage of the current low market rates, CUA’s suite of fixed rates offer home buyers and existing borrowers a highly competitive option.
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CUA drops fixed rates to 5.3%

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Very strong outcome for super Saturday Victorian auction clearance rate

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The auction system flexed its muscle this weekend with a couple of massive results.
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
When Rae Tomlinson from Marshall White started the sale campaign for 67 Coppin Street, Malvern East (pictured below, she indicated buyer interest was above $2.5 million. She made it very clear that this was not a quote and the market would determine the eventual price. In the final days leading up to the auction the level of strong buyer interest had jumped above $2.8 million. The scene was set for a big auction.
<img src="/images/stories/2012/10/coppin1.jpg">
The opening bid of $2.6 million followed up with $2.8 million set the tone for the auction. The price quickly moved up to $3.1 million, when the bidding stalled and the vendor was consulted. When the auctioneer came back out the property was announcement on the market. This ignited a bidding frenzy between four bidders until it finally stopped at $3,355,000. You can watch the auction highlights <a target="_blank" href="https://www.facebook.com/APropertyTycoon">on our Facebook page.</a>
It was a similar result at 32-34 Thornley Street, Marrickville (pictured below), when competitive bidding resulted in a sale price more than $200,000 above the reserve. The property was quoted to sell above $1.4 million, so when bidding reached $1.5 million agent Michael Harris sought his owner's instructions. By the time he got back to the auctioneer the reserve had well and truly been passed as bidding had flown to $1.65 million and was still rising.
<img src="/images/stories/2012/10/thornleigh1.jpg">
Out of the 13 registered bidders only four had a chance to bidm and the property finally sold for $1,775,000. Not a bad result since it was only purchased three years ago for $1.35 million and had no major improvements.
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